You sell a 50 put for 4 and buy a 55 call for 5. Stock ends at $47. Profit=............

Q: What is the “days of inventory” in 20x2? (Use 365 days) 30.49 What is the return on assets in 20x2?…

A: Days of Inventory = 365 x Average Inventory / Cost of Sales Return on Assets = Net Profit / Total…

Q: Stock A has a required return of 11%.  Stock B has a required return of 9%.  Both stocks have the…

A: As per dividend discounting model the present value of a stock is P0 = Div1/Ke-g  ( where Div1 is…

Q: Suppose TRF = 5%, TM12%, and b = 2, what is r, the required rate of return on Stock i? 12% 7% 19% 5%…

A: According to Capital Asset Pricing model ,Ri = Rf + [b * (Rm-Rf) ]whereRi = Required rate of return…

Q: Suppose that the last sale of Company X stock was at a price of $50. Further suppose that an…

A: Given: Variables in the question            Market A                  Market B     # shares…

Q: The PE ratlð is O A. how much a stock is expected to earn. O B. how much earnings are going to grow.…

A: The answer will be "c" - how much an investor is willing to pay for $1 of earnings.

Q: Calculate Expected return and standard deviation of returns if the investor purchases the stock at…

A: The expected return and standard deviation are two statistical measures that can be used to analyze…

Q: Figure out the payoff and the profit per share. You sell a 46 call for 4. Stock ends at 545. Profit…

A: A call option seller has the obligation to sell the underlying asset (share) when the call option…

Q: 1. Consider the returns of two shares, A and B, under three possible scenarios: Scenario Stock A…

A: to calculate part c ,    We need to calculate the expected return and standard deviation so…

Q: Continue considering Firm XYZ. If the dividends for Firm XYZ are the same for common and preferred…

A: Step 1:Given Information: Firm Name = XYZPreferred Stock Dividend Per Year = Common Stock Dividend…

Q: Question 1 Consider the three stocks in the following table. P, represents price at time t, and Q,…

A: The rate of return refers to the minimum return earned by the investor while investing in the stocks…

Q: Can you answer b please

A: Solving  b)    Data given: Purchased shares on margin at $5 per share Limit sell order at $7 Stop…

Q: 3. A stock had returns of 17 percent, 19 percent, 20 percent, 8 percent, 17 percent, and 11 percent…

A: Rate of Return year 1 = r1 = 17%Rate of Return year 2 = r2 = 19%Rate of Return year 3 = r3 = 20%Rate…

Q: You are given the returns for the following three stocks: Stock B Stock C 3% -23% 9 37 8 11 4 11…

A: Arithmetic return refers to the method used for calculating the mean or average of the various…

Q: Consider the following stock price returns for Costco and Capital One. Demonstrate all your work.…

A: Step 1: Determine the average return on investment for all stocks.About Costco:Compile all of…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Geometric average rate of return will be calculated considering return in each period. Following is…

Q: Consider the following information about two stocks (D and E) and two common risk factors (1 and 2):…

A: Fama-French factor models are financial models used to explain and predict stock returns based on…

Q: The following table gives the counts for three price categories of 500 stooks in a stock portfolio…

A: Solution: Total number of count of stock = $ 500 Below 50$ means the price should be in the limit…

Q: What do you notice about the change in the cost of equity as beta increases? (Select the best…

A: Because you have posted multiple questions , we will answer the first question only. if you want…

Q: JaiLai Cos. stock has a beta of 0.8, the curret risk-free rate is 5.8 percent, and the expected…

A: Beta = 0.8 Risk free rate (Rf) = 5.8% Market return (Rm) = 14%

Q: you have the following stocks stock price 0 1 2 A 10 12 В 15 12 C 25 30 31

A: We can calculate divisor by using this equation Divisor ==Sum ofall pricesdivisor of day 0,1,2…

Q: Stock A has a required return of 4%. Stock B has a required return of 5%. Both stocks have the…

A: Required return refers to the minimum amount received by the investors on the initially invested…

Q: Assume the stock’s future prices of stock A and stock B as the following distribution State Future…

A: Here, State Future Price Stock A Future price Stock B 1 $10 $7 2 $8 $9…

Q: Assume a stock pays a perpetual dividend of 2 dollars, has a required rate of return of 9%, a…

A: Liquidity-based asset pricing empirically explains: the cross-section of stock earnings; how less…

Q: Using the following table. What denominator would you use to create the price weighted index, if…

A: A price-weighted index is a type of stock market index that calculates its value based on the…

Q: What is the beta of each of the stocks shown below? (Negative amounts should be indicated with a…

A: The beta is the amount that a stock's price fluctuates in relation to the entire stock market. A…

Q: You calculated that stocks A and B are worth $50.  A currently sells for $49 and B currently sells…

A: An under valued stock is one that has market value lower than its fundamental value.

Q: 11. Consider the three stocks in the following table. P, represents price at time t, and Q,…

A: Here, Stock Split2:1CompanyPriceP0P1P2A $   90.00 $   95.00 $         95.00B $   50.00 $   45.00 $…

Q: 4. Consider that you buy a share of a stock that currently sells for $50 and pays an annual dividend…

A: The average rate of return (ARR) measures the profitability of the investment. It gives a glance at…

Q: P7.1 Assume you are given the following abbreviated financial statement. چیزا مرگ دخل Current assets…

A: There are different types of ratio like liquidity,Activity ,leverage and profitability ratio…

Q: Suppose that put options on a stock with strike prices $30 and $35 cost $4 and $7, respectively.…

A: The bull spread would use a strike price of $35 and cost C1 $7 by writing put option and buy put…

Q: nvestment weight of each stoc

A: An investment portfolio refers to the various financial investments such as stocks, bonds, cash,…

Q: Calculate the expected return of the following information of Bader stock State 1 3 Probability 0.20…

A: Using excel

Q: Suso a'ymonst, gainuani yd mes vam tan odi lliw inong doum wol Question 6 vani ristlichsupe. ne…

A: The objective of the question is to calculate the required returns for both Stock P and Stock Q, and…

Q: Given the following data and assume the margin listed, what will be your equity position in the…

A: Margin refers to the loan which the investor takes to buy the stock to increase the returns through…

Q: You own a stock worth $100. A put has a strike price of $90 and a premium of $8. A Call has as…

A: Collar strategy is created by holding an underlying stock, buying an out of the money put option,…

Q: Suppose you are given the following information about 2 stocks, what weight would you invest in…

A: Portfolio variance : When calculating portfolio variance, stocks in a portfolio are examined for…

Q: A stock is currently selling for $40.00 a share. What is the gain or loss on the following…

A: Long position means that when prices when increase from the current position and short position is…

Q: There are three stocks in the index alpha, beta, and gamma. The stocks sell for $102 $345 and $87…

A: The new divisor can be found by dividing the sum of all the new prices by the weighted average of…

Q: Graph the value of your portfolio as a function of the relevant stock price. Please create a graph…

A: The options refer to the derivative instruments that provide their holders the choice of…

Q: 8. (Portfolio of two stocks) The following spreadsheet presents data for stocks A and B. A B C 1 2…

A: Step 1:The return of portfolio is the weighted average return of Stock A and Stock B. Standard…

Q: You currently hold a stock that is priced at $223. You buy an atthe-money put for $9. Compute the…

A: The put option is the option in which one party gives another party a promise to buy a particular…

Q: Use the portion of the stock table shown below to answer the questions that follow. Round dollar…

A: loss= sale price - purchase price

Q: You sell a 50 put for 4 and buy a 55 call for 5. Stock ends at $47. Payoff=..

A: Put strike price is $50 Call strike price is $55 Stock ends at $47 To Find: Payoff

Q: Based on the following information, which stock has the least risk?   A. Stock A B. Stock B C. Stock…

A: Risk-Return Relation:The risk and the return always have the positive relation which means if the…

Q: You should not buy it since the fair return is greater than the actual return.

A: holding period return is actual return 8%

Q: Draw a hockey stick diagram for a short position, where the strike price is $185 and the stock price…

A: All the details about the option are available. A hockey stick diagram is required. The nature of…

Q: An investor has a 2-stock portfolio with $25,000 invested in Stock X and $50,000 invested in Stock…

A: Solution:-Beta refers to the sensitivity of portfolio with reference to the changes in market.